1. Missouri Association of School Business Officials
Developing Budgets During Difficult Times
William T. Rebore, Ph.D.
Saint Louis University

2. Sources of Financial Distress
There are many issues that could precipitate a financial crisis if not recognized and prepared for in advance. Some of the most prominent include:
Flat state funding. Despite recent surges in tax receipts, officials in many states “remain concerned
Stagnant or falling property taxes. The slowdown in the housing market could have ramifications
Rising pension and healthcare costs. Health care costs for current and former employees now
Escalating fuel costs. A confluence of factors may conspire to increase fuel prices.

3. Budget Decisions
Mission (Core Values) Market Trends Financial Performance Program Decisions

4. CORE PURPOSE An Organization’s Reason for Being
Mission
Organization
To solve unsolved problems innovatively A collaborative learning community guided by a relentless focus to ensure each student achieves maximum growth To give unlimited opportunity to women To preserve and improve human life To give ordinary folk the chance to buy the same things as rich people To make people happy
3M Hazelwood School District Mary Kay Cosmetics Merck Wal-Mart Walt Disney

5. CORE PURPOSE An Organization’s Reason for Being
Mission
Core Values
We will provide a quality education for all students and enable them to realize their full intellectual potential All students will have the knowledge, skills, abilities and attitudes to become productive citizens and lifelong learners in a changing global society. The School District strives to develop in all its children the strength of character, the skills, the knowledge and the wisdom necessary to build creative, productive lives and to contribute to a global society.
Realize Full Intellectual Potential. Productive Citizens and Lifelong Learners. To Build Creative, Productive Lives.

6. Definitions
Budgetary Solvency – The ability to generate sufficient recurring revenues during the fiscal year to meet recurring expenditures without incurring a fund deficit.
Financial Condition – A local government’s or school district’s ability to finance expected services on a continuing basis. A local government or school district with a positive financial condition maintains adequate service levels while surviving economic disruptions, has the ability to identify and adjust to long-term changes, and anticipates future problems.
Fiscal Stress – The inability of a local government or school district to maintain solvency
Financial Performance - A measure of how well a district uses assets to efficiently fund its programs (ex. cost per pupil, performance standards, outcomes).
Market Trends - The direction and momentum of programs, program changes, and mandates.

7. Your Marketplace DESE Federal Programs Appropriations Stakeholders
Socio-economic Realities
Commercial Development
Major employers
Civic groups

8. Relationship of Program Costs to MissionQ3
Important Q1
Critical Q4
Less Important Q2
Very Important
Financial Performance
Program Costs
Mission

9. Relationship of Market to Competencies
Market Trends S3
Important S1
Critical S4
Less Important S2
Very Important
Internal Competencies

10. Internal Competencies
Resource Allocation
Financial Per. Q3
Important Q1
Critical Q4
Less Important Q2
Very Important S3
Important S1
Critical S4
Less S2
Very
Market Trends
Mission
Internal Competencies

11. Quadrant/Sector Mapping Results
Drives the School
Reassess
Operating Model
Consider Overall
Focus
Assess Commitment to
Prioritization
Sector 2
Requires External
View
Defines the
School
Plan Exit
Strategy
Reconsider
Resource
Deployment
Sector 3
Requires Investment
Invest in
Competencies
Provides
Resources
Tighten Implementation of Priorities
Sector 4
Requires Change
Reassess the
Mission
Plan Resource
Drains Resources